February 14 News, Virginia is advancing a regulatory bill targeting cryptocurrency ATMs. The bill has been approved by the state Senate and House of Delegates and is now awaiting the governor’s signature. Once enacted, it will establish uniform compliance standards for self-service terminal operators across the state and provide consumers with more systematic fraud protection.
According to the bill, operators must complete registration and licensing processes, submit periodic reports, and comply with fee cap requirements. Machines are no longer allowed to promote themselves as “ATMs” or use any language implying cash withdrawal. The new regulations will also set daily and monthly transaction limits, implement a 48-hour freeze period for new users to facilitate refunds in case of suspected fraud, and require all transactions to undergo identity verification. Clear risk warnings must be posted next to the devices.
The bill was introduced by State Delegate Michelle Maldonado. She stated that the direct reason for pushing the legislation was multiple scam cases in the state, including an incident in southwestern Virginia where a resident lost about $15,000 using such terminals, as well as similar cases in Fairfax County. She pointed out that these devices resemble traditional ATMs, which can easily cause misunderstandings; users are not withdrawing cash but converting cash into digital assets and transferring them to domestic or foreign platforms, often induced by scammers.
Maldonado also mentioned common scams such as impersonating law enforcement, technical support, emotional scams, and debt threats. She cited data indicating that in some parts of the U.S., single losses from such schemes have reached as high as $250,000. The bill therefore calls for establishing refund channels, limiting transaction fees, and strengthening disclosure obligations.
Virginia is not an isolated case. By 2025, about 17 U.S. states have enacted protective regulations against cryptocurrency ATM scams, mainly focusing on transaction limits and on-site warnings. South Carolina’s Beaufort County law enforcement officer Eric Cardin stated that many funds are quickly transferred to countries that do not cooperate with investigations, making recovery extremely difficult. The new regulations are seen as an important step in raising public awareness and reducing scam opportunities.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
U.S. Treasury Highlights Risks From Crypto ATM Fraud
The U.S. Treasury report reveals a rise in fraud linked to crypto ATMs, highlighting their misuse by criminals due to compliance failures among operators. In 2024, over 10,900 scams were reported, resulting in $246.7 million in losses. Enhanced oversight is necessary to combat these issues.
TodayqNews20m ago
Former CFTC Chair: Banks Need the Digital Asset Market Clarity Act More Than Crypto Companies
Former CFTC Chairman Giancarlo pointed out that the U.S. Digital Asset Market Clarity Act has stalled due to disputes over rewards paid to crypto companies, making the demand for this legislation even more urgent among banks. He warned that if the impasse continues, crypto businesses might shift to Europe and Asia.
GateNews1h ago
Emphasize technological neutrality! The Federal Reserve: The capital recognition method for "tokenized securities" should follow that of traditional securities
The Federal Reserve and other agencies have issued new guidelines for the banking industry, requiring tokenized securities to follow the same regulatory capital standards as traditional securities, emphasizing that technological form does not affect the method of capital calculation. This reflects regulatory authorities' focus on the legal nature and risk assessment of financial assets, demonstrating the gradual integration of banks and blockchain finance, which helps banks evaluate the risks and costs of tokenization businesses.
区块客3h ago
The CLARITY Act: Key Deadlines in April, US Banks and Crypto Investors Face Choices
The CLARITY Act is entering a critical stage, with lawmakers planning to advance it before April 3rd, aiming to clarify regulatory responsibilities for digital assets. The negotiations mainly focus on the regulation of stablecoin yield products, and no agreement has been reached yet. The passage of the bill will impact the participation of American banks in the digital asset space and their global competitive position.
GateNews3h ago
Former CFTC Chair: Lack of cryptocurrency regulation harms banking industry, the CLARITY Act must be passed quickly
Former CFTC Chairman Giancarlo pointed out that the uncertainty in cryptocurrency regulation has a much greater impact on the banking industry than on the crypto sector. Banks, due to their strict regulatory and legal obligations, cannot make large-scale investments in this area. He warned that if the bill fails to pass, American banks may fall behind in digital financial transformation, facing structural challenges that could affect their global competitiveness. The core controversy of the bill involves stablecoin yields and regulatory jurisdiction. If it fails, regulatory guidance may only provide temporary solutions.
MarketWhisper4h ago
